Patspin India Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, revealing continued operational challenges with widening losses. The textile company's Board of Directors approved the unaudited standalone financial results at their meeting held on February 7, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 showed mixed results with marginal revenue growth but increased losses:

Other income surged to ₹156 lakhs in Q3FY26 from ₹26 lakhs in Q3FY25, primarily due to ₹149 lakhs of export benefits from prior periods received during the quarter.

Nine Months Performance

For the nine months ended December 31, 2025, the company's performance reflected ongoing operational difficulties:

Exceptional Items and Provisions

The company recorded exceptional items worth ₹101 lakhs in Q3FY26, primarily comprising provisions for incremental liability under the newly notified Labour Codes. The Government of India brought substantial provisions of four Labour Codes into force on November 21, 2025, requiring the company to recognize additional employee benefit obligations for past periods in accordance with Ind AS 19.

Operational Challenges and Restructuring Plans

Patspin India continues to face significant operational headwinds, with the company currently carrying out job work operations where revenue is sufficient only to cover variable costs. The company has submitted a new resolution plan to lenders for debt restructuring, which includes:

• Moratorium for interest and working capital term loan installment payments
• Reduction in interest rates
• Fresh working capital facility

Bankers have completed a Techno Economic Viability study confirming the viability of the restructuring proposal, which remains under consideration.

Auditor's Concerns

The statutory auditors highlighted material uncertainty regarding the company's ability to continue as a going concern, citing net losses, cash losses, and eroded net worth. However, they noted that the proposed debt restructuring, combined with cost rationalization measures and potential resumption of own manufacturing operations, could improve EBITDA and cash generation capabilities.

Patspin India Ltd has disclosed significant defaults on loan repayments to multiple banks, totaling ₹19.48 crores as of December 31, 2025. The textile company submitted this disclosure to BSE Limited on January 5, 2026, in compliance with SEBI listing regulations and circular SEBI/HO/CFD/CMDL/CIR/P/2019/140 dated November 21, 2019.

Default Details and Financial Position

The company's defaults are spread across three major banking institutions, with the total amount comprising both principal and interest components:

Bank-wise Breakdown of Defaults

The defaults are distributed across three lenders, with Central Bank of India bearing the highest exposure:

Financial Indebtedness Overview

The company's complete financial indebtedness picture reveals its dependence on bank financing. The total financial indebtedness, including both short-term and long-term debt, amounts to ₹56.67 crores, which matches exactly with the outstanding borrowings from banks and financial institutions. This indicates that the company has no unlisted debt securities such as Non-Convertible Debentures (NCDs) or Non-Convertible Redeemable Preference Shares (NCRPS).

Regulatory Compliance

The disclosure was made by T. Ravindran, Chief Financial Officer of Patspin India Ltd, as part of mandatory reporting requirements under SEBI listing regulations. The company is required to disclose defaults on payment of interest or repayment of principal amount on loans from banks and financial institutions to maintain transparency with investors and regulatory authorities.

Patspin India Limited, incorporated in 1991 with CIN L18101KL1991PLC006194, operates in the textile sector and maintains its corporate office in Kochi, Kerala. The company holds ISO 9001:2005 and 14001:2005 certifications and is part of the GTN Group.